Regional Divergence: West Rebounds, Northeast Contracts
Geographic trends showed uneven performance. The West added 37,000 jobs, driven by a sharp 35,000-job increase in the Mountain region. The Midwest posted a modest gain of 20,000, while the South lost 5,000 positions. The Northeast saw the most significant contraction, shedding 19,000 jobs, primarily from a 16,000-job loss in New England.
Wage Growth Steady: Pay for Job-Changers Remains Elevated
Despite weaker hiring, wage growth remained stable. Pay for job-stayers rose 4.5% year-over-year, while job-changers saw a stronger 7% increase. The financial activities sector led with a 5.2% median pay increase for job-stayers. Pay growth was notably weaker in small firms (2.6% for those with under 20 employees), while medium and large firms posted stronger wage gains, closer to 4.8%.
Firm Size Matters: Mid-Sized Businesses Drive Hiring
Mid-sized companies (50–249 employees) led employment gains with 51,000 new jobs, while small businesses cut 13,000 positions and large firms trimmed payrolls by 3,000. The strong showing by mid-sized firms suggests some resilience in the middle market, even as hiring pressure intensifies in other areas.
Market Outlook: Bearish Bias on Labor Strength
The sharp drop in job creation and regional softness point to a weakening labor market. While steady wage growth offers some support to consumer demand, the overall tone of the report is bearish from a labor strength perspective. Traders should monitor upcoming Fed commentary closely, as softening employment may alter rate expectations heading into the summer.
More Information in our Economic Calendar.
